Dairy, GM Foods Remain Red Lines in India-US Trade Talks

India has reaffirmed its firm stance on dairy and genetically modified (GM) foods as non-negotiable sectors in the ongoing bilateral trade negotiations with the United States. Despite renewed momentum to finalize a “foundational” trade pact ahead of elections in both countries, New Delhi has made it clear that any concessions allowing U.S. dairy imports or GM food items would be politically and economically untenable.

Officials familiar with the discussions told Mint that the Indian government will not budge on these two critical sectors, given their deep socio-economic implications. Dairy, in particular, supports over 80 million Indian farmers, many of whom operate on small-scale or cooperative models and rely on local feed practices that do not align with U.S. dairy protocols, especially regarding the use of animal rennet and GM feed.

Indian dairy stakeholders have long argued that permitting imports from highly subsidized U.S. producers would undercut domestic prices, disrupt rural livelihoods, and weaken the organized sector’s sustainability. India’s food safety and cultural standards also remain incompatible with several U.S. dairy processing norms. Previous attempts to resolve this through labeling flexibility or special carve-outs have failed to bridge the trust gap.

While talks continue on digital trade, services, and tariffs in other areas, dairy and GM foods are expected to remain exclusion zones, as per both trade negotiators and Ministry of Commerce insiders.

Industry Insight:
For Indian dairy entrepreneurs and cooperatives, this signals regulatory continuity and protection of domestic markets. It also underlines the need to strengthen value addition and exports, rather than brace for U.S. competition in the near term.